connected manufacturing enabling industry 4.0 and the

Connected Manufacturing – Enabling Industry 4.0 and

the Factory of the Future

Tobin Alexander

Vice President, Manufacturing Asia-Pacific and Japan

2 © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Digital Transformation


Industry 1.0 to Industry 4.0

The way towards the 4th Industrial Revolution

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 3

First

mechanica

l loom

1784

Degree of

Complexity

Time

End of

18th Century

Industrial Revolution through

introduction of mechanical production

facilities powered by water and steam

(1)

Industry

1.0


introduction of mass production based

on the division of labor powered by

electrical energy

Start of

20th Century

Industry

2.0

(1)


Introduction of electronics and IT

for a further production automation

Start of

70ies

Industry

3.0

(1) Industrial

Revolution based on

Cyber-Physical

Production Systems,

Internet of Things

Today

Industry

4.0

(1)

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 4 Internal

The world is now digital

1 ScienceDaily. ScienceDaily, 22 May 2013

2 Technology Adoption Report: Business Networks, Ardent Partners, 2014

3 Internet of Things (IoT) 2013 to 2020 Market Analysis: Billions of Things, Trillions of Dollars, IDC, 2013

4 Statista, 2014

http://www.sciencedaily.com/releases/2013/05/130522085217.htm

http://cporising.com/2014/10/09/introducing-ardent-partners-technology-adoption-report-on-business-networks/

http://cts.businesswire.com/ct/CT?id=smartlink&url=http://www.idc.com/getdoc.jsp?containerId=243661&esheet=50721954&newsitemid=20131003005687&lan=en-US&anchor=Internet+of+Things+(IoT)+2013+to+2020+Market+Analysis:+Billions+of+Things,+Trillions+of+Dollars&index=4&md5=59da372afbdafaa6e8563b0f5d6412f0

http://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/


Reimagine

Business models Business processes Work

Digital Transformation Impact


Reimagine

Digital Transformation, Business Model Impact

Focus on customers Individualize products Optimize the utilization of labor and raw materials


Reimagine

Digital Transformation, Business Processes Impact

Customer centricity End-to-end visibility Working with Networks


Reimagine

Digital Transformation, Impact on Work

Automate non-value-added tasks

Boost productivity Real-time visibility


Digitizing the extended Supply Chain

Plan Design Respond Produce Deliver Operate

Solution Lifecycle OEM

Innovation & Development

Partners

Multi - tiered

Supply Networks

Shared Economy

Marketing Sales Procurement

Finance HR

Business Integration

Digitizing the extended Supply Chain

Digitizing Business Processes

Digitizing Supplier Networks


SAP HANA, the most advanced in-memory platform

SAP HANA Platform

Application services

Database services

Integration services

SAP, ISV and custom applications

All devices

OLTP AND

OLAP TOGETHER

ONE OPEN

PLATFORM NO REDUNDANCY

All data

ADVANCED

COMPRESSION

IN MEMORY ACID

COLUMNAR STORE


Connected Manufacturing


Digital transformation in the Extended Supply Chain

Enabling Connected Manufacturing

Sharing Economy

Business Network

Resource Scarcity

Sustainability

Individualized Products

Industry 4.0

Customer Centricity

Omni-Channel Plan

Design

Operate

Deliver

Produce

Respond


The Market of One Rapid Innovation Extreme Variability

Trends and Challenges Current Challenges: Individualized Products

MAKE


Trends Impacting Connected Manufacturing

The Market of One User Experience Capabilities

Customized offerings to meet the unique needs

of individual customers

Multi-faceted configuration

Highly variable demand with regional and localized requirements

Customer Examples



Business Technology Innovation

Product Variation

Production runs / lot sizes

Time

y

X

Increasing technology for business and production creates additional

complexity in business processes and systems

Shorter production runs / lot sizes

Greater variation of products from same factory

User Experience Capabilities Extreme Variability



User Experience Capabilities

Design and production more closely aligned

Shorter lifecycles and faster innovation cycles

Products are becoming smarter

Offering for additional services

Requires flexible and empowered operations

Rapid Innovation



Internet of Things and Industry 4.0

SAP Connected Manufacturing runs industrial IoT with Industry 4.0 scenarios

Internet of Things

Internal INDUSTRIAL scenario External scenario

» All industries

» All things and devices

Smart Industrial Things and Devices

Smart Things and Devices

Industry 4.0

» Manufacturing industries

» OT-IT convergence

» Systems, things, and devices on the shop floor

SCADA / HMI

Operations Layer

MES / Historian

ERP

2

1


Accelerate the Enterprise Success

Higher Productivity Due to Simplification

MES

Automation

ERP 1. Top Floor to Shop Floor

Need for SMART SIMPLIFICATION

How to accelerate and grow productivity and profitability in complex business environment? How to run business and production seamlessly integrated?


How to accelerate and grow productivity and profitability in complex business environment? How to run business and production seamlessly integrated?

2. Customer to Operations

Accelerate the Enterprise Success

Higher Productivity Due to Simplification

Need for SMART SIMPLIFICATION

1. Top Floor to Shop Floor

Simplify

Harmonize

Reduce

SAP Manufacturing

SAP Plant Connectivity (PCo) to Automation

SAP S/4 HANA, IBP Business Networks

Consumer/ Customer


SAP Connected Manufacturing Is All About Leveraging Big Data to Drive New Insights into Operations

Connect

Transform

Re-imagine

Smart Devices

Multi-structured DATA SOURCES

Social And Mobile External Systems

Visualization

Mobile Users

Continuous Intelligence Operational Efficiency Reduced Cost Improved Quality


SCADA / HMI

Operations Layer

MES / Historian

ERP


Five Scenarios of “Connectedness”

5 Scenarios

Shop Floor to Top Floor

Machine to Machine

E-commerce Integration

Operations Cloud

Direct Replenishment

1

2

3

4

5

2

1

Supplier

5

Enterprise

Analytics Operations Cloud

4

4

E-commerce

Consumer

3 3

Business

Networks


Automation

SAP Business Suite powered by SAP HANA

Connected Products


Connected Assets

Real-time Network Insights

Production Planning Materials Management Quality Management Plant Maintenance

Manufacturing Execution

Manufacturing Intelligence

Quality Management

Manufacturing Engineering

Plant Connectivity

Demand Logistics Scheduling Order Fulfillment

Human Resources

Global Batch Traceability

Product Networks Personalized Solutions – Product Networks – Design/Produce/Operate

LIMS MES SCADA

/ HMI

Plant Data

Collection

Wireless

Integration

Environmental

Building

Management

Plant

Historian

Plant DB DCS

PLC

Sensors

Public Cloud

On-premise

Shop Floor

Private

Cloud


• Sensor detects material carrier

• Requests control parameters from ME

Design Plan Respond Produce Deliver Operate

ERP • Production plan

• Bill of materials (BoM)

• Serial Numbers

• Quality results per lot

• Production Details Management

• Detailed And Flexible

• Log Parametric Data

• Tolerance Checks

• Mapping of ME production details to PLC control parameters (recipe)

• Mapping of ME production details to PLC control parameters (recipe)

• Machine reports completion and requests next operation

MES (ME & MII)

PCo Conn

ectors

PLC (Machine)

Monitor

SAP Connected Manufacturing Architecture The Connected Plant in the Extended Supply Chain

• Variant Management

• Production Steps • Order confirmation

• Inventory update, Equipment usage

• Production Step Routing

• Shop Floor Controls For Each Step

• Return “Conformance“ Or “Non-conformance“ Decisions


Pow

ere

d b

y S

AP H

AN

A

MRP on HANA

Connected

Logistics

Public Cloud

SAP MII

On-premise

SAP Fiori

SAP Manufacturing

Execution Suite

Manual Data Entry

Automatic Data Entry (Machine Connectivity)

Shop Floor

SAP Connected Manufacturing Strategy Cloud / On-Premise / Shop Floor

LIMS MES SCADA

/ HMI

Plant Data

Collection

Wireless

Integration

Environmental

Building

Management

Plant

Historian

Plant DB DCS

PLC

Cloud Fully Integrated With on Premise Investments Private

Cloud

Predictive

Maintenance

Sensors

SAP ME

As Built


SAP Predictive Maintenance & Service

Condition Monitoring Alerting

Vibration Analysis Predictions

Connected Manufacturing /

Smart Factory Real-time visibility of shop floor operations. Intelligent production, One piece production

SAP Asset Intelligence Network

Up to date service documentation

Spare parts / Replacement

Performance Benchmarking

Real-time visibility of shop floor operations, One Piece production SAP Connected Manufacturing

One stop shop for the manufacturers, service providers, & operators of the world’s assets Asset Intelligence Network

Order replacement parts and Services from business network Ariba® and Fieldglass ®

Monitor product perfor-mance and take action SAP Condition and Predictive Maintenance & Service

Manufacturer Asset Operator

Service Technician

Industrial IoT Enablement


Integrate Operations with Connected Manufacturing

Plant A Plant B Plant C

Shop

Floor

Top

Floor

SAP HANA

Platform

SAP HANA

Transform Manufacturing Operations

Connect Your Global Plant Network

Monitor and send real-time alerts to and

from intelligent devices

Connect to people & things

• Enterprise Systems

• Manufacturing Systems

• Automation and Control

• Shop Floor Workers

• Management

• Sensors, Machines, RFID

Tags, Scanners, Printers

Deliver Real Time KPIs

Manage Energy

Improve Asset Efficiency

Embed Track and Trace

Drive Cost, Quality, and

Overall Performance

Extend Your Product Networks

Reimagine Business Models


Case Studies


Automotive Engine Manufacturer Connected Manufacturing Overview

SAP Confidential


SAP Solution Overview

SAP project Overview Deploy SAP ME, MII, PCo and VTR to support detail manufacture and assembly of block, cylinder head

and crank for both diesel and petrol engines for this green field site in Wolverhampton UK

Goals and Objectives Provide full engine tracking capability encompassing machine and assembly facilities.

• Capture unit movements and status updates at a granular level

• Provide detail view of WIP at operation level

• Capture accurate operational data

• Provide SAP ECC with strategic status update

Other SAP systems used – PM, ECC, EWM

Data collects • Machine monitoring

• Units machined/completed

• Product and process quality data


Integrated Enterprise Machine Integration

Three Machining Lines, One Engine Assembly Line • 37 Second Takt time per Engine

• 5 Plant Connectivity/Kepware OPC Server platforms

• 6000+ Transactions/Minute at full rate

Crank Machining • 89 Programmable Controllers

• 209 PCo Agent Instances

• 4500 Data Points

Block Machining • 120 Programmable Controllers



Cylinder Head Machining • 75 Programmable Controllers



Engine Assembly (2 PCo Servers) • 232 Programmable Controllers




Information on Project



Facility Health Reports scope

• Bottleneck Analysis by line and by constraint operation

• Down Time by State by operation and by machine

• State Trend by operation and by machine

• MTBF & MTTR showing downtime in minutes and scheduled time minus downtime

• Top X Fault Trend by machine and operation

• Top Fault by Occurrence & Time

• Run at Rate (JPH Capability)

• Over Cycle Analysis (Engine Assembly line only)

• OEE (Including Bottle Neck Station)

• Quality Rate

• Hour Counts by station and by process

• Part through Station, including Cycle Time

• Right First Time – without rectification

• First Time Through after rectification



Incoming Enhanced Interfaces scope

• SAP → MES Unit Scrapped Notification

• SAP → MES Pallet Deposit into Interim Warehouse 1 or 2

• SAP → MES Pallet Issue from Interim Warehouse 1 or 2

• SAP → MES Shift Calendar Information Transfer

• SAP → MES Engine Block Flag Assignment

• SAP → MES Pallet Deposit into Finished Major Unit Warehouse

• SAP → MES Pallet Issue from Finished Major Unit Warehouse

• FLAGS → MES Cylinder head & Engine Rectification Details

• FLAGS → MES Serialized Parts Scrap Details



Outgoing Enhanced Interfaces scope

• MES → SAP Raw Material Unit Launch to Machining Line

• MES → SAP Machined Unit Launch from Machining Line

• MES → SAP Completed Engine Notification

• MES → SAP Unit Quarantine Notification

• MES → SAP PM Equipment Failure Notification

• MES → SAP EWM Pallet and Unit Details Notification



Process and Product Quality reports scope

• By Engine

• By Operation Station

• By Process

• By Engine Type

• By Adaptor Plate / Platen

• By ON/NOK/ALL

• Parameter Requirement

• Linked to Facility Health Analysis (Complete Engine Birth

Certificate)

• Linked to Tightening Server – Tightening Spindle selectable (All /

multi-selectable)

• Linked to Cold Test

• Linked to Hot Test

• Linked to Leak Test


Customer Example Volvo Eicher Truck Final Assembly

Factory

Truck Final Assembly Line with SAP Manufacturing Suite and 3D Visual

Enterprise


Customer Example Volvo Eicher Truck Final Assembly

Factory

2016-04-10.mp4


Harley-Davidson: Digital Business Transformation


Challenged to Adapt the Business to New Market and Technology Realities

• Fast Changing Buying Behavior and Geographies

• Customization of Products / Make-to-Individual

• Accelerated Customer Shipments

• Cross Enterprise Automation & Standards

• Supply Chain and Product Compliance

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 40 Internal 40

The Customer Business Challenges/Background Re-organization of facility – merging different assembly lines into one model-

independent assembly line Outsourcing major sub-assemblies and sequencing to a supplier ERP/SCM implementation to replace their existing production legacy system Traceability and defect data tracked on a sheet of paper with the vehicle. Disconnect between SAP ERP, SAP APO system and the shop floor.

The Customer Objective Replacing paper forms for tracking data. Full genealogy record against the VIN number to identify tracked components

to the vehicle. Automatic reporting point confirmations Defect closure enforcement. Real time enforcement of quality and assembly data entry. Detailed information about work done to the vehicle during assembly process Enforce in process holds for suspect vehicles.

.

The Program A3 Overview

41 © 2014 SAP SE or an SAP affiliate company. All rights reserved. 41

• Re-engineer manufacturing operations • Revert to core processes and outsource the rest • Synchronize Extended Supply Chain with 3PL • Cultural Transformation • Introduce New Operating System • Only then…Global Manufacturing ERP York • Define and Deploy Global Template

The Core Challenges


Old Factory New Factory


SAP Manufacturing – Industry 4.0 Realization Visually Connected with Minimal User Entry – where appropriate!

© 2014 SAP A. All rights reserved. 45 Public

Business

Benefits

Process Optimization

+19%

Net Margin

+25%

Dividend

to 6 hours

Operations Monitoring

Visual Work Instructions

Share

Repurchase Reduce Time

$2.5

MM

>$2.5MM

from

21 days

-7%

Reduced Cost


Improving Manufacturing Productivity and Yield Global Market Leader in Fans, Blowers, and Air Handlers

99.5% First pass yield

2-3% Manufacturing

productivity

improvement

100% Track and Trace


» Visit our Website:

http://www.ebmpapst.com

» Join us on Facebook:

https://www.facebook.com/ebmpapstFANS

» Follow us on Twitter:

https://Twitter.com/ebmpapst_news

The ebm-papst group is the world's leading

manufacturer of fans and motors. Our wide range

of over 15,000 products can be found in many

industries, including ventilation, air conditioning

and refrigeration, household appliances, heating,

IT and telecommunications, as well as automotive

and commercial vehicles.

Published on July 14, 2015

Trends Impacting Automated Agile Manufacturing Discover Industry 4.0 at ebm-papst

Link: https://youtu.be/zg-12uRT0rQ

https://youtu.be/zg-12uRT0rQ


Where to find more information SAP CONNECTED MANUFACTURING Links

» SAP Manufacturing

» SAP Manufacturing YouTube

» SAP Manufacturing

Community

» SAP ME WIKI

» SAP MII WIKI

» Sales Play

» Products Solution Hub

http://www54.sap.com/lob/manufacturing.html

http://www.youtube.com/sapvideomom

http://scn.sap.com/community/manufacturing

http://wiki.sdn.sap.com/wiki/display/ME/Home

http://wiki.scn.sap.com/wiki/display/xMII/Manufacturing+Integration+and+Intelli

gence

https://jam4.sapjam.com/groups/6Z7XS2hflTQOrb951FeC3x

https://jam4.sapjam.com/groups/about_page/6p6pZ4XtQN7fJe5bxbwZAY

http://www54.sap.com/lob/manufacturing.html

http://www.youtube.com/sapvideomom

http://scn.sap.com/community/manufacturing

http://wiki.sdn.sap.com/wiki/display/ME/Home

http://wiki.scn.sap.com/wiki/display/xMII/Manufacturing+Integration+and+Intelligence

http://wiki.scn.sap.com/wiki/display/xMII/Manufacturing+Integration+and+Intelligence

https://jam4.sapjam.com/groups/6Z7XS2hflTQOrb951FeC3x

https://jam4.sapjam.com/groups/about_page/6p6pZ4XtQN7fJe5bxbwZAY


Questions?

Thank you

Tobin Alexander Vice President

Manufacturing Innoation

[email protected]

M: +65 9730 0725

mailto:[email protected]


© 2014 SAP SE or an SAP affiliate company.

All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an

SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE

(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional

trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,

and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or

SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and

services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related

presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated

companies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be

changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,

promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties

that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking

statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

http://global12.sap.com/corporate-en/legal/copyright/index.epx



connected manufacturing enabling industry 4.0 and the

Documents